Q. Is it still possible to snap up a bargain in inner Sydney or has that ship well and truly sailed?
A. It is absolutely still possible – that’s good news. But the reality is that the goal posts definitely have shifted over the past 12 months. We’ve seen approximately 16 per cent capital growth over the past 12 months across Sydney, so it is harder and harder to snap up a bargain or even to find those bargains. But they do exist.
I’ll give you a recent example of one of my investor clients. We bought a three-bedroom unit in Petersham in Sydney’s inner west within a five minute walk from the train station.
Now conservatively I thought that property would be worth at least $650,000, but we actually secured this property for just $550,000. So that’s a good $100,000 below what I think the market value should have been and that was within the last six months.
You just need to know where to look and possibly adjust your perceptions of what constitutes a ‘bargain’.
Nick Viner, buyer's agent, Buyers Domain